Asset Monetization picks pace; NHAI looks to fast-track asset monetization process; Fastag toll collections continue upswing
According to the latest Infrastructure report by Motilal Oswal Financial Services, 1H FY23 has been muted with only 810 kms of projects awarded till date. Owing to the weak 1H, NHAI would have to accelerate project awarding in 2H FY23 in order to meet its target of 6,500 kms in FY23. In terms of construction, NHAI is looking to construct 5,000 kms of projects in FY23 and has completed 1,471 kms in 1H FY23.
Asset monetization is the key focus area for NHAI to raise funds outside of budgetary resources. National Highways Infra Investment trust (NHAI InVIT) successfully closed its second fund raise of INR 14.3b for part funding of three road assets, stretching 246 kms. Since its launch in Nov-21, NHAI InVIT has raised INR 94.3b in two tranches with a total portfolio of eight road assets of 636 kms. However, the movement has been slow as far as Toll Operate Transfer (ToT) projects are concerned. (Fig 1.)
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NBM&CW November 2022